Business Intelligence and its Role in the Company Management System

Know what is the importance of Business Intelligence in effective running of a business. Read to know how BI helps organizations evaluate trends, evaluate data and plan future actions.

Ensuring a business's effective functioning and development requires competent management of its activities. Earlier, the forecasting of the company's development was based on information about the activities in previous periods. Today the approach is completely different. Modern businesses should adapt to the rapid growth of information flows and the increased unpredictability of the operating environment.

This determines the importance of business intelligence services (BI services) for any company regardless of size, type of activity, see here for more BI helps to study development trends, evaluate and investigate the factors of change in activity results, substantiate the business plan and management decisions, monitor their implementation, identify reserves for increasing the business efficiency, as well as develop a successful development strategy.

Business Intelligence and the Tasks It Solves

Business intelligence is the process of transforming data into information, that is, into new knowledge that can be used to increase the company's efficiency and competitiveness. It involves using a wide range of analytical indicators, statistical and mathematical methods, computer technologies, and software for making managerial decisions.

BI systems are developing in four main directions:
  1. Data storage: The data in the BI system storage is structured specially for more efficient analysis and query processing.

  2. Data integration: ETL tools are used to build and maintain data storage. These tools extract, transform, and load data into storage or another database.

  3. Data analysis: OLAP (online analytical processing) tools are used for comprehensive data analysis. They allow to view different data slices, identify trends and dependencies (by region, product, customer, etc.).

  4. Data representation: Reports, graphs, charts, and dashboards are common data visualization tools. They display results in the form of indicators and scales that allow control of the current values of the selected indicators, compare them with the minimum/maximum allowable, and thus identify potential threats to the business.

Among the tasks that business intelligence systems solve are the following:
  • Monitoring, analysis, and adjustment of operational objectives

  • Support for the development of business processes and structural changes in the organization

  • Ability to model various business situations within a single information environment

  • Conducting operational analysis according to non-standard requests

  • Reducing the routine workload of staff and freeing up time for deeper analytical work

  • Stable operation providing an increase in the volume of processed information.

Considering the above, it is not surprising that the high demand for business intelligence is maintained in all sectors of the economy due to the need for constant interpretation of primary data into capacious and meaningful key performance indicators of the organization.

What Is the Typical Business Intelligence Process?

The typical business intelligence process can be represented as a sequence of steps. The initial step is data collection since data comes from different sources (the Internet, programs, spreadsheets, social networks, etc.). Using strategic analytics tools, businesses can consolidate data across departments to gain a single view of how the performance of one department affects others. The use of cloud technologies greatly simplifies this process.

The received data needs to be sorted and processed. Machine algorithms significantly accelerate deep data analysis by recognizing patterns and repetitive actions. This allows analysts to focus on working with the information received and not on the manual logistics of the required data.

Descriptive, diagnostic, predictive, and prescriptive analytics tools are effectively used in the processing of data arrays:
Descriptive data analytics allows understanding economic processes that reflect the company's previous and current periods of activities. This takes place through the creation of reports on the results of the analysis and comparison of changes in certain indicators;

  • Diagnostic analytics uses methods of classification, correlation, and regression analysis. It reveals the determinants of changes, hidden trends and regularities, builds visual information panels of the main indicators of the company

  • Predicative analytics allows building predictive models based on trends and historical context, extrapolates the behavior of the business environment

  • Prescriptive analytics is based on predictive models. It helps to develop alternative scenarios of strategic development of the company and choose optimal management solutions to achieve the best results.

As we can see, the BI process is not simple, but it solves a large number of managerial tasks and allows to implement a successful business strategy.

Popular Business Intelligence Solutions Worth Considering

Here are some popular BI solutions that have proven their effectiveness in practice:
  1. Qlik Sense. This is a visual analytics platform that supports independent data visualization and research. It allows to quickly create a combination of visual representations, explore data, discover relationships, and consider opportunities from any point of view.

  2. QlikView is one of the most interesting business intelligence solutions in the world. The application makes it easy to carry out a comprehensive analysis of various stages of the sales process and evaluate the effectiveness of interaction with each client

  3. Naumen Service Desk helps to increase the manageability of IT department employees, as well as to keep transparent records of labor costs at all levels

  4. Roistat. It is a system of end-to-end business intelligence. It collects data from the CRM system, advertising platforms, and the main website. Based on the received data, reports on key business indicators are generated

  5. Seeneco. It is a cloud service for managing business finances, including accounting, financial analytics, and cash planning.

Thus, using business intelligence tools is extremely useful for today's business. It allows to obtain multi-level generalized information about the functioning of the company and its divisions, assess potential opportunities and possible risks, identify shortcomings in management processes, and making effective strategic decisions.


Author: Umesh28 Jul 2023 Member Level: Gold   Points : 4

This is an exhaustive resource on business intelligence tools, methods, and applications to optimize their use in a business. In my view, a business intelligence professional has to use the latest techniques of data science in using the data in the best way which could help the management in taking business decisions.
There is plenty of data available in various forms but how to utilize that for the prosperity of one's business is the main thing that a business intelligence professional has to manage.

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